Donor Advised Funds: Part 1 – Strategic Assessment for Nonprofits

This comprehensive two-part series examines donor advised funds (DAFs) from a strategic nonprofit perspective. Part 1 provides a critical strategic assessment framework for nonprofits considering DAF cultivation, including market analysis, organizational readiness evaluation, and competitive positioning. It introduces a five-factor scoring system to help organizations determine whether DAF cultivation aligns with their capacity and strategic objectives. Part 2 will deliver detailed implementation guidance, including specific cultivation strategies, relationship?building protocols, and operational best practices for organizations that determine DAF cultivation is appropriate for their circumstances. With DAF assets reaching $251.52 billion in 2023 according to the National Philanthropic Trust, these funds represent a significant redistribution of charitable capital that nonprofits must understand strategically rather than pursue opportunistically.

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